Correlation Between UWM Holdings and ClimateRock
Can any of the company-specific risk be diversified away by investing in both UWM Holdings and ClimateRock at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UWM Holdings and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UWM Holdings Corp and ClimateRock Class A, you can compare the effects of market volatilities on UWM Holdings and ClimateRock and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in UWM Holdings with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of UWM Holdings and ClimateRock.
Diversification Opportunities for UWM Holdings and ClimateRock
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UWM and ClimateRock is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding UWM Holdings Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and UWM Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on UWM Holdings Corp are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of UWM Holdings i.e., UWM Holdings and ClimateRock go up and down completely randomly.
Pair Corralation between UWM Holdings and ClimateRock
Given the investment horizon of 90 days UWM Holdings Corp is expected to under-perform the ClimateRock. In addition to that, UWM Holdings is 17.38 times more volatile than ClimateRock Class A. It trades about -0.02 of its total potential returns per unit of risk. ClimateRock Class A is currently generating about 0.29 per unit of volatility. If you would invest 1,160 in ClimateRock Class A on October 26, 2024 and sell it today you would earn a total of 30.00 from holding ClimateRock Class A or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UWM Holdings Corp vs. ClimateRock Class A
Performance |
| Timeline |
| UWM Holdings Corp |
| ClimateRock Class |
UWM Holdings and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UWM Holdings and ClimateRock
The main advantage of trading using opposite UWM Holdings and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UWM Holdings position performs unexpectedly, ClimateRock can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ClimateRock will offset losses from the drop in ClimateRock's long position.| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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